Upstart vs. SoFi: Which is better?

Paying for unexpected expenses or seeing high-interest debt accumulate can feel like a strain. Whether you’re looking to fund home improvements, medical expenses or a special occasion, a personal loan usually serves as a lower-interest option than other financial tools such as a credit card. But, not all lenders are created equal. Upstart and SoFI are both marketplaces offering personal loans, but each caters to a different type of borrower. We’ll compare the rates, fees and more to help you decide which marketplace fits your needs best.

Upstart vs. SoFi: A quick comparison

	Upstart	SoFi
	Go to site	Go to site
Finder rating	★★★★★	★★★★★
Personal loan products offered	Debt Consolidation Medical Expenses Home Improvements Student Debt Moving Wedding Vacation	Credit Card Consolidation Home Improvements Family Planning Travel Wedding
Interest rates	7.80% to 35.99%	8.99% to 29.99% fixed APR
Fees	0% to 12% of the target amount	No fees
Loan amounts	$1,000 to $50,000	$5,000 to $100,000
Turnaround time	As soon as the same day	Same-day Funding
Eligibility requirements	Proof of citizenship Proof of education Proof of current employment or any starting within 6 months Minimum 300 credit score	Proof of citizenship Good credit score Proof of income and employment
Ratings	A+ BBB rating 4.9 Trustpilot rating	A+ BBB rating 4.7 Trustpilot rating
State availability	Not available in: Connecticut, Iowa, Maine, Maryland, Nevada, New York, Oklahoma, Oregon, West Virginia	Available in all states
Pros	Considers factors outside your financial background, such as education Considers factors other than traditional full-time employment, such as self-employment 99% of personal loans sent within 1-day time frame	No origination fees required Flexible terms from 2 to 7 years
Cons	Requires repayment terms of as little as 36 months The first payment can be due in as little as 20 days from the origination date	Must be employed to secure the loan Need to take out a minimum of $5,000
	Go to site	Go to site

• SoFi's terms and conditions

  Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
  SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
  Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
  Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
  Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

Upstart vs. SoFi: Which one’s better?

While Upstart and SoFi both offer personal loans, Upstart’s loans may offer more flexibility in terms of repayment plans, maximum lending amounts and eligibility requirements. Its 300 minimum credit score requirement and a rubric that includes educational background means younger or lower-credit score borrowers may have an easier time qualifying. Meanwhile, SoFi requires a higher credit score but has zero additional fees.

When to consider Upstart

Upstart has a lower minimum credit score requirement and may work best if:

• You have a lower credit score. Upstart lends to borrowers with a minimum of 300 credit scores.
• You have a short employment history. Upstart also considers your education if you don’t have an extensive employment history.

When to consider SoFi

Sofi offers quick approval and more flexible loan terms that may work best if you need:

• Faster loan funding. SoFi offers same-day funding for approved borrowers.
• Flexible repayment options. Depending on your loan’s terms, you may have up to seven years to repay the full amount and interest.
• No additional fees. SoFi has zero fees, so you won’t pay late fees, origination fees or prepayment penalties.

The similarities

Upstart and SoFi are digital lenders that offer personal loans for debt consolidation, higher education, home improvements and more. They both have positive reviews from verified third-party organizations such as Better Business Bureau and Trustpilot.

SoFi stands out in the marketplace due to its lower APRs and longer repayment periods. On the flip side, Upstart caters to those with fair to poor credit and offers loans as little as $1,000 in select states. At the end of the day, we recommend comparing other loan options to determine which lender best suits your credit profile, ideal repayment terms and overall life needs.

Alternatives to SoFi and LendingClub:

Here are three alternatives to SoFi and Lending Club:

• Upgrade: Upgrade offers fixed-interest loan products also up to $50,000. Depending on set terms by the lender, you may have up to seven years to repay your loan. A hardship program is also available to help with repayments.
• Best Egg: Best Egg offers personal loans with APRs starting from 7.99% and offers loan amounts up to $50,000 with a variety of repayment methods. It was ranked the number-one company in 2021 by Best Company, a consumer review site.
• Avant: Avant is more lenient than most lenders since it does not require a credit score and welcomes self-employment income.

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